Notice of Which of the Following Circumstances Should Alert a Purchaser

question 31

Multiple Choice

Notice of which of the following circumstances should alert a purchaser of a negotiable instrument that he might not be accorded the favored position of a holder in due course?

• A)The instrument has a limited indorsement.
• B)The instrument is overdue.
• C)The instrument is given as a security interest.
• D)None of the above.

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Definitions:

Conventional Banks

Financial institutions that offer a wide range of banking services without following any specific religious or ethical restrictions.

Consumers

Individuals or groups who purchase goods and services for personal use.

Clearing House Interbank Payments System

An electronic payment system operated by major banks for the purpose of settling transactions among themselves.

Society of Worldwide Interbank Financial Telecommunications

An international organization that provides a network for financial institutions globally to send and receive information about financial transactions.